And that’s not Qualcomm’s only problem.
The Huawei Mate 60 and Mate 60 Pro smartphones are known to be based on the Kirin 9000s SoC, which is manufactured by SMIC using the 7 nm process technology. And due to the return of Huawei to its platform, Qualcomm will suffer greatly.
According to analyst Ming-Chi Kuo, next year new Huawei smartphones will use only Kirin platforms. Apparently, we are talking about all the devices of the Chinese company.
To make it clear how important this is for Qualcomm, it must be said that in 2022 Huawei purchased 23–25 million Snapdragon single-chip systems from Qualcomm, and this year it will purchase a total of about 40–42 million. This is a very, very rather big share for Qualcomm.
This is the opposite effect of sanctions against Huawei.
As a result, it is expected that the supply of Qualcomm platforms for Chinese brands next year will fall relative to the current one by 50-60 million at least. The analyst believes that due to competition from Huawei, a number of other companies will reduce the volume of orders from Qualcomm.
However, the latter is not going to be idle. Already at the end of this year, as expected, the company will start a price war, that is, it will reduce prices for its platforms. Yes, Qualcomm will lose profit because of this, but it may not lose market share in China so much.
But it’s not all bad news for Qualcomm. Kuo confirms recent rumors that the Exynos 2400 SoC will be used in Samsung Galaxy S24 smartphones more than previously thought. In addition, in 2025, Apple will finally have its own 5G modem, that is, the company will stop buying modems from Qualcomm.
